The mishap took place when the driver of the bus, which was on way to Kokernag from Diyalgam to drop students of a private high school, lost control while negotiating a blind curve.
Seven students and the driver of the vehicle are undergoing treatment and their condition is stated to be stable now, police said.
The J&K government has announced ex-gratia relief of Rs. 1 lakh each to the next of kin of the deceased and Rs. 10,000 each for the injured.